HJ 

5806 
L4 


UC-NRLF 


INHERITANCE  TAXES 

OF  ALL  THE  STATES 


LEE,  HIGGINSON    &   CO. 

BOSTON 

NEW  YORK  CHICAGO 


INHERITANCE    TAXES 

OF  ALL  THE   STATES 


LEE,    HIGGINSON    &   CO. 

BOSTON 
NEW  YORK  CHICAGO 


Copyright,  1911,  by 
LEE,  HIGGINSON  &  Co. 


GEO.  H.  ELLIS   CO.,  PRINTERS,   272   CONGRESS  ST.,  BOSTON 


We  have  had  prepared  by  our  counsel,  Messrs.  Ropes, 
Gray  &  Gorham,  a  summary  of  the  inheritance  laws  of  the 
various  States  of  the  United  States.  We  have  endeavored 
to  make  this  summary  as  clear  and  concise  as  possible, 
without  unnecessary  details,  and  have  particularly  designed 
it  for  the  information  of  non-resident  stockholders. 

We  give  below  (1)  a  list  of  those  States  having  no  in- 
heritance tax;  (2)  a  list  of  those  States  having  an  inheri- 
tance tax,  but  holding  it  inapplicable  to  non-resident  stock- 
holders in  corporations  organized  under  their  laws;  and 
(3)  a  condensed  summary  showing  the  rates  of  inheritance 
tax  in  the  remaining  States,  preceded  by  an  explanatory 
introduction. 

The  laws  of  the  several  States  are  subject  to  change  by 
further  legislation. 

(1)    List  of  States  having  no  inheritance  tax. 

ALABAMA  INDIANA 

ARIZONA  MISSISSIPPI 

DISTRICT  OF  COLUMBIA  NEW  MEXICO 

FLORIDA  NEVADA 

GEORGIA  RHODE  ISLAND 

SOUTH  CAROLINA 


(2)  List  of  States  having  an  inheritance  tax,  but  hold- 
ing it  inapplicable  to  non-resident  stockholders  in 
corporations  organized  under  their  laws. 

DELAWARE 

PENNSYLVANIA 

VIRGINIA 

(3)  Explanatory  introduction  to  summary. 

Property  Liable  to  Tax. 

Property  belonging  to  residents:  All  cash,  stocks,  bonds, 
and  other  like  property,  no  matter  where  held,  and  real 
estate  within  the  State. 


236776 


Property  belonging  to  non-residents:  All  real  estate 
within  the  State,  and  all  stocks  in  corporations  organized 
under  the  laws  of  the  State,  no  matter  where  held,  and  cash, 
bonds,  and  other  property  actually  within  the  State. 

Vermont,  and  possibly  one  or  two  other  States,  by  ruling, 
and  West  Virginia  by  statute,  attempt  to  tax  bonds  of  cor- 
porations organized  under  their  laws  held  by  non-residents, 
whether  such  bonds  are  on  deposit  within  the  State  or  not. 
Such  a  tax,  in  cases  where  the  bonds  are  not  on  deposit 
within  the  State,  seems  unconstitutional. 

Connecticut  by  statute  taxes  registered  bonds  of  Con- 
necticut corporations,  whether  on  deposit  within  the  State 
or  not.  With  this  exception,  the  possible  distinction  be- 
tween registered  and  coupon  bonds  is  as  yet  undefined  by 
statute. 

States  having  an  Inheritance  Tax  Law  which  applies  only  to 
Collateral  Inheritances. 

The  following  States  have  only  a  collateral  inheritance 
tax,  which  in  general  taxes  only  inheritances  received  by 
nephews  and  nieces  and  more  distant  relatives,  persons 
not  related  to  the  decedent,  corporations,  and,  except  in 
New  Hampshire,  New  Jersey,  and  Ohio,  brothers  and  sisters: 

IOWA  MISSOURI  OHIO 

KENTUCKY  NEW  HAMPSHIRE  TEXAS 

MARYLAND  NEW  JERSEY  VERMONT 

NORTH  DAKOTA 

Graduated  Taxes. 

A  majority  of  the  States  having  an  inheritance  tax  law 

increase  the  rate  of  tax  in  proportion  as  the  inheritance 

increases.     Some  of  such  States  tax  at  the  increased  rate 

only  the  excess  over  the  smaller  amount,  and  such  States 

(Q)       so  far  as  ascertained  are  marked  (Q). 

Exemptions. 

A.     Based  on  Value  of  Property. 

(1)  In  some  States  the  exemption  is  granted  by  express 

statute  or  by  ruling  of  Tax  Commissioner  or  corresponding 

officer  to  each  and  every  legatee.     Such  States  are  marked 

(*)         (*).     In  other  States  the  exemption  may  be  deducted  only 

once  from  the  total  amount  of  the  estate.     Such  States  are 


marked  (f).     It  has  not  been  ascertained  into  which  of  these         (t) 
classes  States  marked  (I)  fall.  (J) 

(2)  Some  States  allow  the  exemption  to  be  taken  in  full 
from  the  property  within  their  jurisdiction.     Such  States 

so  far  as  ascertained  are  marked  (X).     Other  States,  how-       (X) 
ever,  allow  only  the  proportion  of  the  exemption  to  be 
taken  out  of  the  property  within  their  jurisdiction  which 
such  property  bears  to  the  total  amount,  wherever  situated, 
of  the  decedent's  estate. 

(3)  Some  States  do  not  tax  at  all  estates  falling  below 
a  certain  specified  value,  thus  allowing  an  exemption  of  a 
different  variety.     Such  exemptions  are  noted. 

B.  Legacies  for  Public,  Charitable,  and  Educational  Purposes. 
Nearly   all   States   having   any   exemption   law  exempt 

legacies  for  public,  charitable,  or  educational  purposes,  but 
this  exemption,  in  most  cases,  applies  only  when  such  lega- 
cies are  to  be  used  within  the  State  levying  the  tax,  and  for 
this  reason  the  exemption  is  not  of  much  importance  to 
non-residents  of  such  States,  and  it  has  not  been  noted  in 
the  summary. 

C.  Other  Exemptions. 

In  addition  to  the  above  there  are  a  few  miscellaneous 
minor  exemptions  in  some  of  the  States  which  for  the  sake 
of  brevity  are  not  noted. 

Liability  for  Tax. 

In  all  States  marked  (L)  the  tax  constitutes  and  remains        (L$ 
a  lien  on  all  the  property  for  an  indefinite  period. 

In  States  marked   (C)   a  corporation  or  person  trans-       (C) 
ferring  or  delivering  securities  owned  by  a  non-resident 
decedent   without   complying   with  the  provisions   of  the 
statute  is  liable  for  the  tax. 


Deductions. 

Massachusetts  and  Vermont  allow  taxes  paid  in  foreign 
States  on  the  estates  of  resident  decedents  to  be  deducted 
from  the  tax  to  be  paid  in  the  State  of  residence,  to  an  amount 
not  exceeding  the  tax  payable  in  the  State  of  residence 
on  such  property  situated  in  the  foreign  State. 


4 

Non-resident  Stockholders  in  New  England  Railroad  Corporations. 

Non-resident  stockholders  in  New  England  Railroads 
which  are  incorporated  under  the  laws  of  more  than  one 
State  are  usually  assessed  on  only  such  part  of  the  value  of 
each  share  as  is  proportional  to  that  part  of  the  company's 
line  or  to  the  value  of  the  company's  property  lying  within 
the  State  levying  the  tax. 


Summary. 

Property  passing  to  or  for  the  use  of  the  classes  of  persons 
named  in  the  following  summary  is,  subject  to  the  exemp- 
tions indicated,  liable  to  inheritance  tax  at  the  rates  named. 

For  meaning  of  symbols  that  appear  in  the  summary,  see 
explanatory  introduction,  under  the  headings  named  below: 

(Q)     Graduated  Taxes Page  2 

(*)      Exemptions.    Subdivision  A,  Paragraph  1 "      2 

(f)              "                       "             "         "           " "3 

(t)              "                       "             "         "           " "3 

(X)                                                                         2 "       3 

(L)  Liability  for  Tax                                                                   .  "      3 

(C)            "        "     " "      3 


LEE,  HIGGINSON  &  CO. 


JAWUABY,  1911. 


5 

Rate 
ARKANSAS :        (L,  but  only  for  five  years  on  realty.)  of  Tax. 

Class  A.    Grandfather,  grandmother,  father,  mother,  husband, 

wife,  lineal  descendant,  brother,  sister,  adopted  child  ....          i  % 

Class  B.     Uncle,  aunt,  nephew,  niece,  lineal  descendant  of 

same  .  2% 

Class  C.     All  others: 

Not  exceeding  $10,000 3% 

Exceeding  $10,000  and  not  exceeding  $20,000 4% 

20,000    "      "                      50,000 5% 

5o,ooo 6% 

EXEMPTIONS:   (f) 

Class  A $5,000 

Class  B 2,000 

Class  C.    Estates  less  than  $1,000  in  value  are  not  taxed. 


CALIFORNIA:        (L)  (C)  (Q) 

Where  the  amount  of  the  property  passing  does  not 
exceed  $25,000,  at  the  rates  specified  in  the  column 
headed  "Rate  of  Tax,"  which  are  known  as  "Primary 
Rates." 

Class  A.  Husband,  wife,  lineal  issue,  lineal  ancestor,  child 
adopted  in  conformity  with  laws  of  California,  child  to  whom 
decedent  for  not  less  than  10  years  prior  to  transfer  stood  in 
mutually  acknowledged  relation  of  parent,  provided  relation- 
ship began  before  child's  fifteenth  birthday  and  was  contin- 
uous for  10  years  thereafter,  lineal  issue  of  such  adopted  or 
mutually  acknowledged  child i% 

Class  B.    Brother,  sister,  descendant  of  brother  or  sister, 

wife  or  widow  of  son,  husband  of  daughter *M% 

Class  C.    Brother  or  sister  of  father  or  mother,  descendant  of 

brother  or  sister  of  father  or  mother 3  % 

Class  D.  Brother  or  sister  of  grandfather  or  grandmother,  de- 
scendant of  brother  or  sister  of  grandfather  or  grandmother,  4% 

Class  E.     All  others 5% 

When  the  property  passing  exceeds  in  value  $25,- 
000,  the  "Primary  Rates"  above  given  are  increased 
by  multiplication,  as  follows : — 
Exceeding  $25,000  and  not  exceeding  $50,000,  1 1/2  times 
50,000   "      "           "        100,000, 2 
100,000   "      "           "        500,000,2^     " 
500,000 3          " 


Rate 
EXEMPTIONS:  (*)  of  Tax, 

Class  A.    Widow  or  minor  child $10,000 

All  others 4,000 

Class  B 2,000 

Class  C 1*500 

Class  D 1,000 

Class  E 500 

COLORADO:       (L)  (C) 

Class  A.  Father,  mother,  husband,  wife,  child,  brother,  sis- 
ter, wife  or  widow  of  son,  husband  of  daughter,  child 
adopted  in  conformity  with  laws  of  Colorado,  person  stand- 
ing for  not  less  than  10  years  prior  to  death  in  acknowledged 
relation  of  parent,  lineal  descendant  born  in  lawful  wedlock  .  2% 

Class  B.    Uncle,  aunt,  nephew,  niece,  lineal  descendant  of 

same 3% 

Class  C.    All  others: 

Not  exceeding  $10,000 3% 

Exceeding           10,000  and  not  exceeding  $20,000 4% 

"                  20,000    "      "          "           50,000 5% 

"                  50,000    "      "          "          500,000 6% 

"                500,000 10% 

EXEMPTIONS:  (*) 

Class  A.    Provided  "legacy  vests  in  perpetuity"    .    $10,000 
Other  classes.     Estates  less  than  $500  in  value  are  not  taxed. 

CONNECTICUT:       (C) 

Class  A.     Parents,  husband,  wife,  lineal  descendants,  legally 

adopted  child i% 

Class  B.    All  others 5% 

EXEMPTIONS:  (t) 

Class  A.  Such  proportion  of  $10,000  as  value  of  property 
passing  to  all  persons  in  Class  A  bears  to  value  of 
whole  estate. 

Estate  of  non-resident  is  exempt  for  such  propor- 
tion of  whole  exempted  amount  provided  for  estates  of 
residents  as  estate  in  Connecticut  bears  to  total  value  of 
whole  estate  wherever  situated. 


IDAHO :        Identical  with  California. 


Rate 

ILLINOIS :        (C)  (L,  but  only  for  five  years  as  against      of  Tax. 
purchasers  of  realty.) 

Class  A.  Father,  mother,  husband,  wife,  child,  brother,  sis- 
ter, wife  or  widow  of  son,  husband  of  daughter,  any  child 
adopted  in  conformity  with  the  laws  of  Illinois,  (under  cer- 
tain restrictions)  any  person  to  whom  the  deceased  for  not 
less  than  10  years  prior  to  death  stood  in  the  acknowledged 
relation  of  a  parent,  lineal  descendant  born  in  lawful  wedlock: 

Not  exceeding  $100,000 i% 

Exceeding  $100,000 2% 

Class  B.  Uncle,  aunt,  nephew,  niece,  lineal  descendant  of 
same: 

Not  exceeding  $20,000 2% 

Exceeding  $20,000 4% 

Class  C.     All  others: 

Not  exceeding  $10,000 3% 

Exceeding  $10,000  and  not  exceeding  $20,000 4% 

20,000   *  50,000 5% 

50,000    "      "  100,000 6% 

100,000 10% 

EXEMPTIONS:  (*) 

Class  A $20,000 

Class  B 2,000 

Class  C.     Estates  less  than  $500  in  value  are  not  taxed. 


IOWA:        (L)  (C) 

Collateral  inheritance  tax  only. 

Class  A,  Father,  mother,  husband,  wife,  lineal  descendant, 
adopted  child,  lineal  descendant  of  adopted  child,  step-child, 
lineal  descendant  of  step-child No  tax 

F" Class  B.     Brothers  and  sisters  who  are  non-resident  aliens,       io%~| 

Class  C.     Non-resident    aliens   other    than    brothers   and 
L     sisters     20%  J 

Class  D.     All  others  5% 


EXEMPTION:  (f) $1,000 

(NOTE. — The  excess  tax  on  non-resident  aliens  should  be  void 
as  contrary  to  treaties  with  foreign  countries.  See  note  under 
Washington.) 


8 

Rate 

KANSAS  :         (C)  (L,  but  no  lien  on  personal  property  as  of  Tax. 
against  bonafide  purchasers  for  value.)     (Q) 

Class  A.  Husband,  wife,  lineal  ancestor,  lineal  descendant, 
adopted  child,  lineal  descendant  of  adopted  child,  wife  or 
widow  of  son,  husband  of  daughter: 

Not  exceeding  $25,000    .................  i% 

Exceeding  $25,000  and  not  exceeding  $50,000  .......  2% 

50,000   "                            100,000  .......  3% 

100,000   "      "                     500,000  .......  4% 

500,000  ....    ...........  5% 

Class  B.     Brother,  sister,  nephew,  niece  : 

Not  exceeding  $25,000    .................  3% 

Exceeding  $25,000  and  not  exceeding  $50,000  .......  5% 

50,000    "      "                     100,000  .......  7^% 

100,000   "      "                     500,000  .......  10% 

500,000  .    .    .................  12^% 

Class  C.    All  others: 

Not  exceeding  $25,000    .................  5% 

Exceeding  $25,000  and  not  exceeding  $50,000  .......  7/4% 


50,000  "  "         100,000  .......   10% 

100,000  "  500,000 


500,000  ...................   15 


EXEMPTIONS:  (*)  (X) 

Husband,  wife,  father,  mother,  child,  adopted  child :  Estates 

less  than  $5,000  in  value  are  not  taxed. 
Brother,  sister,  nephew,  niece:   Estates  less  than  $1,000  in 

value  are  not  taxed. 


KENTUCKY:        (C) 

Collateral  inheritance  tax  only. 

Father,  mother,  husband,  wife,  lawful  issue,  wife  or  widow  of 
son,  husband  of  daughter,  child  adopted  in  conformity  with 
laws  of  Kentucky,  lineal  descendant  born  in  lawful  wed- 
lock   No  tax 

All  others 5% 

EXEMPTION:  (*)  .  $500 


Rate 
LOUISIANA:  0fTax. 

Class  A.     Direct    descendants    or    ascendants     (including 

adopted  children) 2% 

Class  B.     All  others 5% 

EXEMPTION:  (*) 

Class  A.    Estates  less  than  $10,000  in  value  are  not  taxed. 


MAINE: 

Class  A.  Husband,  wife,  lineal  ancestor,  lineal  descendant, 
adopted  child,  lineal  descendant  of  adopted  child,  wife  or 
widow  of  son,  husband  of  daughter: 

Not  exceeding  $50,000 i% 

Exceeding  $50,000  and  not  exceeding  $100,000 ilA% 

Exceeding  $100,000 2% 

Class  B.    Brother,  sister,  uncle,  aunt,  nephew,  niece,  cousin: 

Not  exceeding  $50,000 4% 

Exceeding  $50,000  and  not  exceeding  $100,000 4^2% 

Exceeding  $100,000 5% 

Class  C.     All  others: 

Not  exceeding  $50,000 5% 

Exceeding  $50,000  and  not  exceeding  $100,000 6% 

Exceeding  $100,000 7% 

EXEMPTIONS:  (*) 
Husband,  wife,  father,  mother,  child,  adopted  child:  Estates 

less  than  $10,000  in  value  are  not  taxed. 
All  others :   Estates  less  than  $500  in  value  are  not  taxed. 


MARYLAND:         (L,  on  realty  only  and  for  four  years.) 
Collateral  inheritance  tax  only. 

Father,  mother,  husband,  wife,  children,  lineal  descendant    .    .    No  tax 
All  others 5% 

EXEMPTION:  (t)    Estates  under  $500  are  not  taxed. 


10 

Rate 

MASSACHUSETTS:        (C)    (L,   but  no  lien  against   a      of  Tax. 
purchaser  for  value  of  personal  property.) 

Class  A.     Husband,  wife,  lineal  ancestor,  lineal  descendant, 
adopted  child,  lineal  descendant  of  adopted  child,  adopted 
parent,  lineal  ancestor  of  adopted  parent,  wife  or  widow  of 
son,  husband  of  daughter: 
Not  exceeding  $50,000    .................          i  % 

Exceeding  $50,000  and  not  exceeding  $100,000  .......      i^i% 

Exceeding  $100,000     ..................          2% 

Class  B.    Brother,  sister,  nephew,  niece: 

Not  exceeding  $25,000    .................  3% 

Exceeding  $25,000  and  not  exceeding  $100,000    ......  4% 

Exceeding  $100,000     ....    ..............  5% 

Class  C.    All  others    ..................         5% 

EXEMPTIONS:  (*) 

Husband,  wife,  father,  mother,  child,  adopted  child,  adopted 

father  or  mother:  Estates  valued  at   less  than  $10,000 

are  not  taxed. 
All  others:  Estates  valued   at  less  than  $1,000   are  not 

taxed. 

MICHIGAN:        (C)  (L) 

Class  A.  Father,  mother,  husband,  wife,  child,  brother,  sis- 
ter, wife  or  widow  of  son,  husband  of  daughter,  child  adopted 
in  conformity  with  laws  of  Michigan,  person  to  whom  dece- 
dent stood  for  not  less  than  10  years  prior  to  transfer  in  the 
mutually  acknowledged  relation  of  parent,  lineal  descendant,  i% 

Class  B.    All  others    ..................         5% 

EXEMPTIONS:  (*) 
Class  A.     All  real  estate. 

Personal  estates  valued  at  less  than  $2,000  pass- 

ing to  each  person  are  not  taxed. 

Class  B.     Estates  valued  at  less  than  $100  passing  to  each 
person  are  not  taxed. 


MINNESOTA:        (C)  (L) 

Over  $10,000  and  less  than  $50,000     ...........      i/^% 

$50,000  or  over  and  less  than  $100,000  ..........         3% 

$100,000  or  over  ....................         5% 

EXEMPTION:  (*)  (X)  .............    .    $10,000 


II 

Rate 

MISSOURI :         (C,  but  only  when  corporation  had  knowl-      of  Tax. 
edge  that  property  was  liable  to  tax.)     (L,  for  five 
years  only  as  against  purchasers.) 
Collateral  inheritance  tax  only. 

Father,  mother,  husband,  wife,  legally  adopted  child,  direct 

lineal  descendant No  tax 

All  others 5% 


MONTANA:  (C,  but  corporation  not  liable  unless  it 
has  actual  or  constructive  knowledge  that  tax  is  un- 
paid.) 

Class  A.  Father,  mother,  husband,  wife,  child,  brother,  sis- 
ter, wife  or  widow  of  son,  husband  of  daughter,  child  adopted 
in  conformity  with  laws  of  Montana,  lineal  descendant 
born  in  lawful  wedlock,  and  persons  standing  for  not  less 
than  10  years  prior  to  death  of  decedent  in  mutually  acknowl- 
edged relation  of  parent  and  child  i% 

Class  B.     All  others 5% 

EXEMPTIONS:  (f) 

Class  A.    Estates  valued  at  less  than  $7,500  are  not  taxed. 
Class  B.    Estates  valued  at  less  than  $500  are  not  taxed. 

NEBRASKA :     (C)  (L,  but  a  lien  for  only  five  years  on  realty.) 

Class  A.  Father,  mother,  husband,  wife,  child,  brother,  sis- 
ter, wife  or  widow  of  son,  husband  of  daughter,  child  adopted 
in  conformity  with  laws  of  Nebraska,  any  person  with  whom 
the  decedent  stood  for  not  less  than  10  years  prior  to  death 
in  the  mutually  acknowledged  relation  of  parent  and  child, 
lineal  descendant  born  in  lawful  wedlock i% 

Class  B.    Uncle,  aunt,  nephew,  niece,  lineal  descendant  of 

same 2% 

Class  C.     All  others: 

Not  exceeding  $5,000 2% 

Exceeding  $5,000  and  not  exceeding  $10,000 3% 

"         10,000     "     "          "          20,000 4% 

«         20,000     "     "  "          50,000 5% 

50,000 6% 

EXEMPTIONS:  (*) 

Class  A $10,000 

Class  B 2,000 

Class  C  (|) 500 


12 

Rate 
NEW  HAMPSHIRE:        (C)  (L)  of  Tat 

Collateral  inheritance  tax  only. 

Father,  mother,  husband,  wife,  lineal  descendant,  brother,  sis- 
ter, adopted  child,  lineal  descendant  of  adopted  child,  wife 
or  widow  of  son,  husband  of  daughter No  tax 

All  others 5% 


NEW  JERSEY:        (C)  (L  on  realty  only.) 
Collateral  inheritance  tax  only. 

Father,  mother,  husband,  wife,  child,  lineal  descendant  born 
in  lawful  wedlock,  brother,  sister,  wife  or  widow  of  son, 
husband  of  daughter No  tax 

All  others 5% 

EXEMPTION:  (*)  Amounts  less  than  $500  passing  to  each 
person  are  not  taxed. 

NEW  YORK:        (C)  (L)  (Q) 

Where  the  amount  of  property  passing  does  not  ex- 
ceed $25,000,  at  the  rates  specified  in  the  column 
headed  " Rate  of  Tax,"  which  are  known  as  "Primary 
Rates": 

Class  A.  Father,  mother,  husband,  wife,  child,  brother,  sis- 
ter, wife  or  widow  of  son,  husband  of  daughter,  child 
adopted  in  conformity  with  laws  of  New  York  or  standing 
in  the  mutually  acknowledged  relation  of  parent  and  child 
for  not  less  than  10  years,  provided  that  the  relationship 
began  before  child's  fifteenth  birthday  and  was  continuous 
for  10  years  thereafter,  and  provided  that,  except  in  case 
of  a  step-child,  the  parents  of  such  child  shall  have  been 
deceased  when  such  relationship  commenced,  lineal  de- 
scendant born  in  lawful  wedlock i% 

Class  B.     All  others 5% 

When  the  property  passing  as  above  set  forth  ex- 
ceeds in  value  $25,000,  the  "Primary  Rates"  above 
given  are  increased  by  multiplication,  as  follows : — 

Exceeding  $25,000  and  not  exceeding  $100,000,  2  times 

100,000   *  500,000,  3      " 

500,000   '  1,000,000,  4     " 

"       1,000,000 5     " 


THE  NEW  YORK  INHERITANCE  TAX  LAW  OF  1911. 


The  new  inheritance  tax  law  of  New  York  took  effect  July  21,  1911 .  It 
substantially  reduces  the  rates  of  tax  but  leaves  them  higher  than  they  were 
before  19KK 

The  law  of  1911  provides  for  the  following  taxes: 

Direct  Inheritances 

including  inheritances  to  father,  mother,  hus- 
band, wife,  child,  brother,  sister,  wife  or  widow  of 
son,  husband  of  daughter,  adopted,  or  mutually 
acknowledged  child,  lineal  descendant: 

First  $5,000 Exempt 

Excess  over       $5,000  up  to      $50,000 1% 

Excess  over       50,000  up  to      250,000 2% 

Excess  over     250,000  up  to  1 ,000,000 3% 

Excessover  1,000,000 4% 

Collateral  Inheritances 

including  inheritances  to  persons  other  than 
those  enumerated  above: 

First  $1,000 Exempt 

Excessover       $1,000 up  to      $50,000 5% 

Excessover       50,000  up  to     250,000 6% 

Excess  over     250,000  up  to  1,000,000 7% 


The  exemptions  apply  to  each  inheritance  rather  than  to  the  estate  as 
a  whole. 

The  law  of  1910  and  the  earlier  laws  as  well,  taxed  non-residents  on  stocks 
of  New  York  corporations  and  on  bank  deposits  and  bonds  kept  in  safe 
deposit  boxes  within  the  state. 

All  this  is  done  away  with  by  the  new  law  of  1911.  It  is  expressly  pro- 
vided that  the  inheritance  tax  in  the  case  of  non-residents  shall  be  collected 
only  on  ''tangible  property"  within  the  state.  "Tangible  property" 
is  defined  as  such  property  as  real  estate,  and  goods,  wares,  and  merchan- 
dise, and  is  not  to  be  taken  to  mean  money,  deposits  in  banks,  shares  of 
stocks  or  bonds. 

Residents  of  New  York  are  to  pay  an  inheritance  tax  on  all  their  intan- 
gible property  wherever  situated  and  on  their  tangible  property  located  within 
the  state.  Intangible  property  is  defined  as  such  property  as  money, 
bank  deposits,  shares  of  stocks,  bonds  and  notes. 

These  provisions  put  to  an  end  the  double  taxation  of  non-residents  bo 
far  as  New  York  is  concerned.  They  closely  follow  the  model  inheritance 
tax  law  recommended  by  the  International  Tax  Conference.  (See  page 
115  infra.) 

The  example  set  by  New  York  may  lead  other  states  which  are  trying 
to  tax  non-residents  to  come  into  line.  A  resident  of  New  York  state  still 
may  be  liable  for  a  double  inheritance  tax  if  he  owns  stock  of  a  company  in- 
corporated in  a  state  which  is  taxing  the  stock  of  its  corporations  when 
owned  by  non-residents.  If  these  states  do  not  come  in  line,  New  York 
may  yet  adopt  retaliatory  measures  such  as  are  already  found  in  half  a  dozen 
other  states,  for  the  protection  of  her  own  citizens. 


THE  NEW  YORK  INHERITANCE  TAX  LAW  OF  1911. 


The  new  inheritance  tax  law  of  New  York  took  effect  July  21,  1911.  It 
subst.-antiallv  reduces  the  rates  of  tax  but  leaves  them  higher  than  they  were 
before  1910. 

The  law  of  1911  provides  for  the  following  taxes: 

Direct  Inheritances 

including  inheritances  to  father,  mother,  hus- 
band, wife,  child,  brother,  sister,  wife  or  widow  of 
son,  husband  of  daughter,  adopted,  or  mutually 
acknowledged  child,  lineal  descendant: 

First  $5,000 Exempt 

Excessover       $5,000upto      $50,000 1% 

Excess  over       50,000  up  to     250,000 2% 

Excess  over     250,000  up  to  1 ,000,000 3% 

Excess  over  1 ,000,000 4% 

Collateral  Inheritances 

including  inheritances  to  persons  other  than 
those  enumerated  above: 

First  $1,000 Exempt 

Excess  over       $1,000  up  to     $50,000 5% 

Excess  over       50,000  up  to      250,000 6% 

Excessover     250, 000 up  to  1,000,000 7% 

Excessover  1,000,000 8% 

The  exemptions  apply  to  each  inheritance  rather  than  to  the  estate  as 
a  whole. 

The  law  of  1910  and  the  earlier  laws  as  well,  taxed  non-residents  on  stocks 
of  New  York  corporations  and  on  bank  deposits  and  bonds  kept  in  safe 
deposit  boxes  within  the  state. 

All  this  is  done  away  with  by  the  new  law  of  1911.  It  is  expressly  pro- 
vided that  the  inheritance  tax  in  the  case  of  non-residents  shall  be  collected 
only  on  "tangible  property"  within  the  state.  "Tangible  property" 
is  defined  as  such  property  as  real  estate,  and  goods,  wares,  and  merchan- 
dise, and  is  not  to  be  taken  to  mean  money,  deposits  in  banks,  shares  of 
stocks  or  bonds. 

Residents  of  New  York  are  to  pay  an  inheritance  tax  on  all  their  intan- 
gible property  wherever  situated  and  on  their  tangible  property  located  within 
the  state.  Intangible  property  is  defined  as  such  property  as  money, 
bank  deposits,  shares  of  stocks,  bonds  and  notes. 

These  provisions  put  to  an  end  the  double  taxation  of  non-residents  s>o 
far  as  New  York  is  concerned.  They  closely  follow  the  model  inheritance 
tax  law  recommended  by  the  International  Tax  Conference.  (See  page 
115  infra.) 

The  example  set  by  New  York  may  lead  other  states  which  are  trying 
to  tax  non-residents  to  come  into  line.  A  resident  of  New  York  state  still 
may  be  liable  for  a  double  inheritance  tax  if  he  owns  stock  of  a  company  in- 
corporated in  a  state  which  is  taxing  the  stock  of  its  corporations  when 
owned  by  non-residents.  If  these  states  do  not  come  in  line,  New  York 
may  yet  adopt  retaliatory  measures  such  as  are  already  found  in  half  a  dozen 
other  states,  for  the  protection  of  her  own  citizens. 


13 

Rate 
EXEMPTIONS:  (*)  (X)  of  Tax 

Class  A.    Father,  mother,  widow,  or  minor  child  .    .      $5,000 
All  others    ..............          500 

Class  B  ....................  I00 

(NOTE.  —  The  comptroller's  method  of  computation  is  adopted  on 
$500  and  $100  exemptions.     Some  surrogates  differ.) 

NORTH  CAROLINA:         (L,  on  personalty  only.) 

Husband  or  wife  .....................    No  tax 

Class  A.  Lineal  issue,  lineal  ancestor,  brother,  sister,  per- 
son standing  in  relation  of  child  ............. 

Class  B.     Descendant  of  brother  or  sister     ........ 

Class  C.    Brother  or  sister  of  father  or  mother,  descendant 

of  brother  or  sister  of  father  or  mother  ..........          3% 

Class  D.  Brother  or  sister  of  grandfather  or  grandmother, 
descendant  of  brother  or  sister  of  grandfather  or  grand- 
mother ........................  4% 

Class  E.    All  others: 

Not  exceeding  $5,000      .................          5% 

Exceeding  $5,000  and  not  exceeding  $10,000     .......      7H% 

10,000    "      "          "          25,000     .......        10% 

25,000    "      "          "          50,000     ....... 


50,000     ...................        15 


EXEMPTION:  (*) 

All  classes     ..................      $2,000 

NORTH  DAKOTA  :     (L)     Collateral  inheritance  tax  only. 

Class  A.     Father,  mother,  husband,  wife,  lineal  descendant, 

adopted  child,  lineal  descendant  of  adopted  child  .....   No  Tax 

Class  B.     All  others  (but  $25,000  exempt  t  )     .......          2% 

OHIO  :         Collateral  inheritance  tax  only. 

Class  A.  Father,  mother,  husband,  wife,  brother,  sister, 
nephew,  niece,  lineal  descendant,  adopted  child  or  person 
recognized  as  adopted  child  and  made  legal  heir  under  laws 
of  Ohio,  lineal  descendant  of  adopted  child,  wife  or  widow  of 
son,  husband  of  daughter  ................  No  tax 

Class  B.     All  others    ..................          5% 

EXEMPTION:  (f)  .  ...     $200 


14 

Rate 

OKLAHOMA:        (L)  (C)  of  Ta 

Where  the  amount  of  property  exceeds  in  value  the 
exemptions  specified  below,  the  following  rates 
known  as  "Primary  Rates'*  shall  apply  as  follows: 

On  the  first  $5,000  of  such  excess  in  Class  A. 

On  the  first  $2,000  of  such  excess  in  Classes  B  and  C. 

On  the  first  $500  of  such  excess  in  Classes  D  and  £. 

Class  A.  Husband,  wife,  lineal  issue,  lineal  ancestor,  child 
adopted  in  conformity  with  laws  of  Oklahoma,  child  to  whom 
decedent  for  not  less  than  10  years  prior  to  transfer  stood 
in  mutually  acknowledged  relation  of  parent,  provided  such 
relationship  began  at  or  before  the  child's  fifteenth  birthday 
and  was  continuous  for  10  years  thereafter,  lineal  issue  of 
such  adopted  or  mutually  acknowledged  child i% 

Class  B.    Brother,  sister,  descendant  of  brother  or  sister, 

wife  or  widow  of  son,  husband  of  daughter i^% 

Class  C.    Brother  or  sister  of  father  or  mother,  descendant 

of  brother  or  sister  of  father  or  mother 3% 

Class  D.    Brother  or  sister  of  grandfather  or  grandmother, 

descendant  of  brother  or  sister  of  grandfather  or  grandmother,         4% 

Class  E.     All  others 5% 

Class  A.  Upon  all  in  excess  of  $5,000  the  primary  rate 
shall  be  increased  i-i25th  of  i  %  for  every  $100  increase. 

Classes  B  and  C.  Upon  all  in  excess  of  $2,000  the 
primary  rate  shall  be  increased  i-soth  of  i%  for  every 
Sioo  increase. 

Classes  D  and  E.  Upon  all  in  excess  of  $500  the 
primary  rate  shall  be  increased  i-ioth  of  i%  for  every 
$100  increase. 


EXEMPTIONS:  (*) 

Class  A.    Widow $10,000 

All  others 5,ooo 

Class  B 500 

Class  C 250 

Class  D     150 

Class  E  .  100 


15 

Rate 
OREGON:        (C)  (L,  for  five  years  only.)  of  Tax. 

Class  A.  Grandfather,  grandmother,  father,  mother,  hus- 
band, wife,  child,  brother,  sister,  wife  or  widow  of  son,  hus- 
band of  daughter,  child  adopted  in  conformity  with  the  laws 
of  Oregon,  any  person  with  whom  deceased  stood  for  not 
less  than  10  years  in  the  acknowledged  relation  of  parent, 
lineal  descendant  born  in  lawful  wedlock i% 

Class  B.  Uncle,  aunt,  nephew,  niece,  lineal  descendant  of 
same a% 

Class  C.    All  others: 

Not  exceeding  $10,000 3% 

Exceeding  $10,000  and  not  exceeding  $20,000 4% 

"  20,000    "      "          "  50,000 5% 

"  50,000 6% 

EXEMPTIONS: 

Class  A.    Estates  not  exceeding  $10,000  are  not  taxed,  and 
$5,000  to  each  person  is  exempt. 

Class  B.    Estates  not  exceeding  $5,000  are  not  taxed,  and 
$2,000  to  each  person  is  exempt. 

Class  C.    Estates  not  exceeding  $500  are  not  taxed,  and 
$500  to  each  person  is  exempt. 


SOUTH  DAKOTA:         (C)  (L,  but  lien  for  six  years  only 
on  realty.) 

Class  A.  Father,  mother,  husband,  wife,  child,  brother,  sis- 
ter, wife  or  widow  of  son,  husband  of  daughter,  child  adopted 
in  conformity  with  laws  of  South  Dakota,  person  standing  in 
acknowledged  relation  of  parent  not  less  than  10  years  prior 
to  death,  lineal  descendant  born  in  lawful  wedlock  .... 

Class  B.    Uncle,  aunt,  nephew,  niece,  lineal  descendant  of 


ClaSS  C.     All  others: 

Not  exceeding  $10,000 4% 

Exceeding  $10,000  and  not  exceeding  $20,000 6% 

"           20,000     "      "         "           50,000 8% 

"           50,000 10% 


i6 

Rate 
EXEMPTIONS:  (*)  of  Tax. 

Class  A.    Widow $20,000 

All  others 5,000 

Class  B 500 

Class  C 100 

(NOTE. — This  tax  law  was  held  unconstitutional  by  the  Supreme 
Court  of  South  Dakota  in  In  re  McKennan's  Estate,  126  N.  W. 
611  (May,  1910).  An  application  for  a  rehearing  has,  however, 
been  granted.) 


TENNESSEE :        (C)  (L,  on  realty  only  and  for  five  years.) 

Class  A.    Father,  mother,  husband,  wife,  children,  lineal  de- 
scendants born  in  lawful  wedlock: 

$5,000  and  over,  but  less  than  $20,000 i% 

$20,000  and  over 


Class  B.     All  others 5% 

EXEMPTIONS:  (f) 

Class  A.    Estates  less  than  $5,000  are  not  taxed. 
Class  B.    Estates  less  than  $250  are  not  taxed. 

TEXAS:        (L)  (Q) 

Collateral  inheritance  tax  only. 
Father,  mother,  husband,  wife,  direct  lineal  descendant  ....    No  tax 

Class  A.    Lineal  ascendant  (other  than  father  or  mother), 
brother,  sister,  lineal  descendant  of  brother  or  sister: 

" iing    $2,000  and  not  exceeding  $10,000 2% 

"  10,000     "     "  "          25,000 2^% 

**  tf    r\f\f\         <*  '*  **  tfft  f\f\f\  3%) 


10,000   "   " 
25,000   "   " 

II 
M 

25,OOO  
SO.OOO 

eo.OOO   "   " 

M 

IOO,OOO        .  . 

100  000   "   " 

u 

500.00O 

500.000  . 

gwjv/w                                                          iwjww     .......  ^( 

4% 

"               c-nrt  nftft                                                                                           3% 

Class  B.    Uncle,  aunt,  lineal  descendant  of  same: 

Exceeding    $1,000  and  not  exceeding  $10,000 3% 

"           10,000    "     "          "           25,000 4% 

"           25,000    "     "          "           50,000 5% 

"           50,000    "     "          "         100,000 6% 

"         100,000    "     "          "         500,000 7% 

"         500,000 8% 


17 

Rate 

Class  C.    All  others:  Of  Tax. 

Exceeding      $500  and  not  exceeding  $10,000  .......          4% 

10,000    "      "          "  25,000  ....... 


"     25,000  "   "    "     50,000  .......    7% 

"     50,000  "  "    "    100,000  .......   8^% 

"    100,000  "  "    "    500,000  .......   10% 

"  500,000    ...................  12% 

EXEMPTIONS:  (*) 

Class  A  ....................  $2,000 

Class  B  ....................  1,000 

Class  C  ....................  500 

UTAH:        (C)  (L) 

Uniform  rate  .......................         5% 

EXEMPTION:  (f)  (X)  ..............    $10,000 

VERMONT:        (C)  (L) 

Collateral  inheritance  tax  only. 

Father,  mother,  husband,  wife,  lineal  descendant,  step-child, 
adopted  child,  child  of  step-child  or  adopted  child,  wife  or 
widow  of  son,  husband  of  daughter  ...........  No  tax 

All  others  ........................          5% 

WASHINGTON:        (C)  (L)  (Q) 

Class  A.  Father,  mother,  husband,  wife,  lineal  descendant, 
adopted  child,  lineal  descendant  of  adopted  child  .....  i  % 

Class  B.     Collateral  heirs  to  and  including  third  degree  of  re- 
lationship: 
Not  exceeding  $50,000    .................          3% 

$50,000  to  $100,000     ..................      4^% 

Exceeding  $100,000     ..................          6% 

Class  C.     Collateral  heirs  beyond  third  degree,  or  strangers: 

Not  exceeding  $50,000    .................  6% 

$50,000  to  $100,000     ..................  9% 

Exceeding  $100,000     ..................  12% 

Class  D.     Collateral  relatives  or  strangers  who   are  non-  ""] 

L     resident  aliens: 
On  all  sums      .....................       25%    I 


i8 

Rate 

EXEMPTION:  (t)  (X)  of  Tax. 

Class  A $10,000 

(NOTE.— The  25%  tax  on  Class  D  was  held  contrary  to  the  treaty 
with  Norway  and  Sweden  in  In  re  Stixruffs  Estate,  109  Pac.  343, 
as  denying  to  aliens  equal  rights  to  take  property.  As  there  are 
similar  treaties  with  most  of  the  large  European  countries,  a 
similar  result  is  to  be  expected,  and  an  alien  will  be  taxed  only 
to  the  same  extent  and  degree  as  a  citizen. 

WEST  VIRGINIA:        (L)   (Q)   (C,  but  only  where  rea- 
sonable cause  to  know  property  is  liable  to  tax.) 

Where  the  amount  of  the  property  passing  does  not 
exceed  $25,000,  at  the  rates  specified  in  the  column 
headed  "Rate  of  Tax,"  which  are  known  as  "Pri- 
mary Rates." 

Class  A.     Husband,  wife,    child,   lineal   descendant,  lineal 

ancestor i% 

Class  B.     Brother  or  sister  (not  including  half-brothers)   .    .          3% 
Class  C.     All  others 5% 

When  the  property  passing  as  above  set  forth  ex- 
ceeds in  value  $25,000,  the  "Primary  Rates"  above 
given  are  increased  by  multiplication,  as  follows : — 

Exceeding  $25,000  and  not  exceeding  $50,000,  i  %  times 

50,000    "     "  "         100,000,  2 

100,000    "     "  500,000,  2^ 

500,000 3 

EXEMPTIONS:  (*) 

Class  A.    Widow $15,000 

All  others 10,000 


WISCONSIN:        (C)  (L)  (Q) 

Where  the  amount  of  the  property  passing  does  not 
exceed  $25,000,  at  the  rates  specified  in  the  column 
headed  "Rate  of  Tax,"  which  are  known  as  "Pri- 
mary Rates." 

Class  A.  Husband,  wife,  lineal  issue,  lineal  ancestor,  child 
adopted  in  conformity  with  laws  of  Wisconsin,  child  to  whom 
decedent  for  not  less  than  10  years  stood  in  mutually  ac- 
knowledged relation  of  a  parent,  provided  relationship  began 
before  child's  fifteenth  birthday  and  was  continuous  for  10 
years  thereafter,  lineal  issue  of  any  adopted  or  mutually 
acknowledged  child 


19 

Rate 

Class  B.     Brother,  sister,  descendant  of  brother  or  sister,       of  Tax. 
wife  or  widow  of  son,  husband  of  daughter  ........ 


Class  C.     Brother  or  sister  of  father  or  mother,  descendant 

of  brother  or  sister  of  father  or  mother  ..........          3% 

Class  D.  Brother  or  sister  of  grandfather  or  grandmother, 
descendant  of  brother  or  sister  of  grandfather  or  grand- 
mother ........................  4% 

Class  E.     All  others    ..................          5% 

When  the  property  passing  exceeds  in  value  $25,000, 
the  "Primary  Rates"  above  given  are  increased  by 
multiplication,  as  follows  :  — 

$25,000  to  $50,000,    i  H  times 
50,000  to  100,000,    2 

100,000  tO  500,000,     2^2 

Exceeding  500,000,    3 

EXEMPTIONS:  (*)  (X) 

Class  A.    Widow    ...............  $10,000 

All  others    ..............  2,000 

Class  B  ....................  500 

Class  C  ....................  250 

Class  D  ..................  150 

Class  E  .  100 


WYOMING:        (C) 

Class  A.  Father,  mother,  husband,  wife,  child,  brother,  sis- 
ter, wife  or  widow  of  son,  husband  of  daughter,  child  adopted 
in  conformity  with  the  laws  of  Wyoming,  person  who  stood 
for  not  less  than  10  years  prior  to  death  in  acknowledged 
relation  of  parent,  lineal  descendant  born  in  lawful  wedlock,  2% 

Class  B.     All  others 5% 

EXEMPTIONS:  (t) 

Class  A $10,000 

Class  B.    Estates  less  than  $500  in  value  are  not  taxed. 


07604 


